Crude futures prices remained relatively stable over the past two weeks averaging approximately $74.00. Conflicting economic news, the fluctuating value of the U.S. dollar and DOE reported inventory levels continued to be the primary price determinants. Refined product prices, while temporarily influenced by the July 4th U.S. weekend activities, remained relatively flat as post-recession demand recovery has not yet occurred.

 Refinery  Yield:  N/A
 Demand:  See below

The EIA last week reported that demand for gasoline over the four weeks ended July 2 was 2% higher than a year ago. While demand has improved year over year, one should be cautioned that the nominal improvement is in comparison to last year at the depth of the recession.

• Oil prices gained strength this week based on a report released from the Paris-based International Energy Agency which predicted that oil demand would rise next year on economic growth in developing countries. Global oil demand should rise by a daily 1.3 million barrels to 87.8 million barrels a day in 2011, a rise of 1.6% on 2010 according to the EIA.
• The International Monetary Fund raised its 2010 world growth forecast to 4.6% from 4.2% although it said Europe needs to act quickly to resolve its debt crisis and bolster consumer confidence or the economic recovery may stall. The IMF boosted its growth estimate for the U.S. economy to 3.3% from 2.7% and said the country should take more steps to curb its budget deficit. It also raised its growth forecast for China to 10.5% from 10%.